What Credit Score Do You Need for a Mortgage in Calgary?

Your credit score is one of the most important deciding factors when it comes to getting a mortgage and buying a home. 

The truth is, your credit score matters A LOT when buying a home. But it’s not everything. It affects whether you get approved for a mortgage in the first place and how much interest you'll pay over time, so you’ll want to take time to prepare before buying a home. Now here's some good news—you don't need perfect credit to buy a house in Calgary. 

In this guide, you'll learn the minimum credit score needed for different loan types, how mortgage lenders evaluate your application, and which mortgage options could work best for your situation. Whether you have a good credit score or a poor one, there's a path forward.

For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.

Credit Scores Needed to Get a Mortgage in Calgary 

• Conventional mortgages (20%+ down payment): 680+ minimum credit score, 720+ for the best rates
• High-ratio insured mortgages (less than 20% down): 600+ minimum credit score, 680+ for good rates

The bottom line? While you technically CAN get a mortgage with a lower score, the minimum credit score needed for good rates is around 680+ and will save you thousands over your mortgage term. Credit score requirements vary by lender, but these guidelines apply to most Calgary-based mortgage lenders.

Remember—these requirements can shift with market conditions. Calgary's supply of detached homes and condos affects how strict lenders might be with their credit requirements.

The Real Deal: How Your Credit Score Affects Your Rates

Let's use a mortgage calculator to see what your credit score means for your monthly payments. Based on a typical $747,500 detached home in Calgary with 20% down:

• Excellent score (750+): About 4.79% interest = $3,185 monthly payment
• Good score (680-749): About 5.14% interest = $3,310 monthly payment
• Fair score (600-679): About 5.99% interest = $3,585 monthly payment

The difference between excellent and fair credit? $400 MORE every single month. Over a 25-year mortgage, that's a jaw-dropping $120,000 in extra interest for the same house! If your amortization period is longer, that amount is only going to go up.

Of course, these numbers only reflect a snapshot when benchmark prices were showing a 7% year-over-year increase for detached homes. As values fluctuate, so do your potential savings from having a better credit score.

Minimum Credit Score Needed for Different Mortgage Types in Calgary

Conventional Mortgages

For conventional mortgages in Calgary (where you put down 20% or more), most mortgage lenders look for a minimum credit score of 680. There are some pros and cons to getting a mortgage with minimal credit. 

For a detached home in Calgary that costs $747,500, taking on a conventional mortgage means having at least $149,500 set aside for a down payment. If you've saved that much, you may not want to settle for higher interest rates because of a borderline credit score. 

On the other hand, time is money. With home values appreciating at recent rates, you may be able to buy a cheaper home at higher interest rates when you have low credit. Additionally, your overall financial health and ability to refinance should be factored into your decision. 

High-Ratio Mortgages With Mortgage Insurance

Planning to put down less than 20%? This is called a high-ratio mortgage, and it requires default insurance from CMHC, Sagen, or Canada Guaranty.

For these insured mortgages, you can qualify with a score as low as 600. But, there's a catch—you'll likely pay higher insurance premiums with a lower score. On a $677,600 semi-detached home with 5% down, that could mean paying an extra $3,000–$5,000 in insurance costs.

The credit score requirements for these loans are strict because they're backed by the government. With that in mind, it’s worth understanding these conditions up front to save you time and frustration during the mortgage pre-approval process.

Beyond the Score: Other Metrics Lenders Look For

Credit Accounts and History Length

Calgary mortgage lenders like to see at least two years of credit history with multiple credit accounts in good standing. First-time buyers might struggle with this, even with decent scores. However, some lenders offer special programs that account for the time it takes to build a credit history. 

Payment History and Red Flags

Late payments stick out like a sore thumb, especially if they're recent. Calgary mortgage lenders get nervous about:

• Payments more than 30 days late in the past year
• Collections or judgments on credit accounts
• Consumer proposals or bankruptcies within the past seven years

Even with a decent overall credit score to your name, these red flags can trigger higher interest rates at best and a mortgage rejection at worst.

Negative information can stay on your credit report for years after the fact. Depending on the credit bureau and your province, bankruptcies in particular can stick around for up to 14 years if you've declared multiple.

There’s some good news for homebuyers with student loans: paying off your debt in timely increments can improve your credit score and help you purchase faster. 

Debt-to-Income Ratio and Mortgage Payments

Your debt-to-income ratio represents how much you make vs how much you owe. Lenders typically want your monthly housing costs—mortgage payments, property taxes, and heating—to be less than 32% of your gross income. Your total debt payments should be under 40% of your income.

With Calgary's property taxes averaging about $4,700–$4,900 annually for a detached home at benchmark prices, this needs to be factored into your calculations. Higher mortgage payments from poor credit can easily push you over these debt ratios.

Recent Credit Inquiries

Each time you apply for credit, it shows up on your report. Multiple inquiries in a short period make Calgary lenders nervous—they wonder why you're suddenly seeking lots of credit.

One exception: When rate-shopping for a mortgage, multiple inquiries within 14–45 days typically count as just one inquiry in the mortgage approval process. Lenders like it when you're careful with such a big purchase.

How to Check Your Credit Score

Canada has two main credit bureaus: Equifax and TransUnion. You can access your credit report online for free on either website. For Equifax, it's listed under Equifax Consumer Credit Report, and on TransUnion, it's the Consumer Disclosure.

You can also order a credit report through the mail, on the phone, or even in person (bring at least two pieces of ID). No matter how you do it, checking your own credit report through the bureaus doesn't ding your score.

Equifax also allows you to access your credit score online for free, while TransUnion allows free access only for residents of Quebec. (You can access the TransUnion's score through its paid credit monitoring service.)

While lenders check both the report and the score, there's a difference; the report lists your debt/payment history and other credit factors, while the score uses that information to calculate a number.

It's a good idea to get a copy of both your credit reports at least a few months before you plan to apply for a mortgage. If you see any errors on it, contact the bureau in question to get it fixed. Even small errors can cost you several points.

5 Fast Ways to Boost Your Credit Score Before Applying

Want to improve your credit score before house hunting in Calgary? Try these quick fixes:

• Pay down credit card balances to below 30% of your limit. This can boost your score by 20–30 points in just one billing cycle. Managing existing credit accounts properly is one of the fastest ways to improve your score.
• Don't close old credit cards. That 10-year-old card with no annual fee? Keep it open. Length of credit history matters, and closing accounts can actually hurt your credit score.
• Check your credit report for errors. Inaccurate credit reporting can sneak up on you, but disputing these can quickly improve your score.
• Become an authorized user on someone else's card. If your spouse or parent has excellent credit, becoming an authorized user on their card can help your credit score by adding their good payment history to your credit accounts.
• Pay off collection accounts. Even old collections can hurt your score. Call the creditor and negotiate a "pay for delete" agreement if possible. This shows mortgage lenders you're serious about your financial obligations.

When to Apply vs. When to Wait

Apply Now for a Mortgage If:

• Your credit score is 680 or above
• You can make the average down payment in Calgary
• Your other financial health indicators can compensate for poor credit
• You need to act fast to secure the lowest prices
• You need to move for work or personal reasons
• Interest rates are about to increase
• You already meet the minimum credit score needed by your preferred lender

Wait and Improve Your Score If:

• You have a poor credit score below 600 and can wait 3–6 months
• You have recent late payments or collections on your credit accounts
• You've applied for several new credit cards or loans recently
• You're right on the edge of a better rate tier (ex., 678 trying to reach 680)
• Your debt-to-income ratio is too high for comfortable mortgage payments
• You want to access better interest rates to save on your mortgage payments

Remember: A 50-point increase in your credit score could save you thousands of dollars over the life of your mortgage in Calgary. All told, the approval process is much smoother with better credit.

For informational purposes only. Always consult with a licensed mortgage or home loan professional before proceeding with any real estate transaction.

Is Your Credit Score Ready for a Mortgage?

The good news is that getting a mortgage with less-than-perfect credit IS possible in Calgary. But a good credit score means better options and significant savings on your mortgage payments. Your credit score isn't just some number—it's a tool that can either save you or cost you thousands of dollars when buying a home in Alberta.